How Much Should You Spend on a Custom Home

If you’re like most people, buying a home is the biggest purchase you’ll ever make. You can’t spend too much, but you don’t want to cut corners and spend too little, either.

So what should a buyer spend on a custom home in Middle Tennessee?

How Much Should You Spend on a Custom Home?

Most lenders suggest that you spend no more than 28 percent of your monthly income on your mortgage payment.

That seems like a simple answer that settles the question, right?

Almost.

What Buying a New Home Saves You

Remember that when you’re living in an older home, you’re going to spend money on repairs, upgrades and other expenses. If your family grows, you may have to add on with a custom renovation; you might also discover that you need things that your home just doesn’t have, such as a roomier kitchen or central air-conditioning.

In some cases, you can end up spending more money to update and upgrade an older home than you would spend on a mortgage for a new custom home (one that has all the features you need, as well as many that you want).

Buying a new home might even afford you tax breaks.

Then there are energy costs. Usually, older homes—even those built in the late 1990s and early 2000s—are equipped with appliances that aren’t necessarily “green.” That goes for the environment and for your wallet. You could be spending far too much running an outdated system that isn’t as efficient as modern systems are.

When you’re buying a custom home, you can also add features that save you money over time, such as solar panels that result in the state of Tennessee cutting you a check each month or smart technology that manages your home’s resources for you.